The true northerner., 1887-12-14
Congress Urgently Called Upon to
Reduce the Treasury
Surplus.
Our Present Tariff Laws Character
lied as Vicious, Inequitahe
and illegal.
The Repeal of the Internal Revenue
Tax on Whisky and To
baccO Opposed.


10 the Congress Of the United States:
You are confronted at the threshold Of your
Legislative duties with n condition OF tho ma
efonal finances which imperatively demands
Immediate and careful consideration.
The amount OF money annually exacted,
thl ough the operation OF present laws. from the
Industries and necessities of the people, largely
exceeds the sum necessary to meet the exi-
gencies of the Government
When we consider that the theory Of our In
stitutions guarantees to every citizen the full
enjoyment of all the fruits of his industry and
enterprise, with only such deduction as may be
his share toward the careful and economical
maintehance OF the Government which protects
him it is plain that the exaction of more than
this is
INDEFENsIBLE ExToRTIoN,
and a culpable betrayal of American fairness
and justice This wrong, inflicted upon those
who bear the burden of national taxation, like
other wrongs. multiplies a brood of evil conse-
quences. The public treasury, which should
only exist as conduit conveying the peoples
tribute to its legitimate objects of eXpendi-
ture, becomes u hoarding-place for money
ueedlessly withdrawn from trade and the poo
pies use, thus cripplng our national energies,
euspending our countrys development pre-
venting investment in productive enterprises.
threatening financial disturbance, and IN
vitng schemes of public plunder This
condition OF our Treasury is not altogether
new and it has more than once of late been
submitted to the peoples representatives in the
Congress, who alone can apply the remedy. And
waited incidents. more than ever presaging finan-
cial commissions and widespread disaster.
1t will not do to neglect this situation because
Its dangers are not now palpably imminent and
apparent They exist none the less certainly,
and await the unforeseen, unexpected occasion
when suddenly they will be precipitated upon
Us
On the 30th day of Juno, 1885, the excess OF
revenues over public expenditures, after COM
plying with the annual requirement. of the
sinking fund act, was Sl7,Sj9 73j. "a during the
year ended June 80. 1886, such excess amounted
to S49, 405, So and during the year ended
juno 80. 1887, it reached the sum of S5j.5j7,-
1885,.
The annual contributions to tho sinking fund
during the three years above specified, amount
ing in the aggregate to $3.50 s,32o.9i, and de-
Quoted from the surplus as stated, We're made
by calling in for that purpose outstanding three
per cent bonds of the Government During tho
six months prior to June 80, 1887, the
SURPLUS REVENUE
had grown 80 large by repeated accumulatons,
and il was feared thc withdrawal of this great
sum of money needed by the people would
80 affect the business of the country that the
sum OF $40 S64, 100 of such surplus was APP
piled to the payment of the principal and
Interest of the three per cent. bonds still
outstanding. and which were then pay
able at the option OF the Government.
The precarious condition of financial affairs
among the people still needing relief, immedi-
'ately after the 30th day of June, 1881, the re-
mainder of the per cent bonds then outstand-
ing, amounting, with principal and interest to
the sum OF Sls,877, 500, We're called in and ap-
piled to the sinking-fund contribution for the
current fiscal year Notwithstanding these OPP
eration5 of the Treasury Department.. roprosen-
cations of distress in business circles not only
continued but increased, and absolute peril
seemed ut hand. In these circumstances the
contribution to the sinking-fund for the current
ilscal year was at once completed by
She expenditure of sH,6s4,z63.55 in
not yet due bearing Az per cent interest, the
premium paid thereon averaging about "a per
cent. for tho former and per cent. for the lat
Ia m A no int a uoqr ,if,fy
during the preso mt year upon the outstanding
bonded Indebtedness OF the Government was TO
some extent anticipated and banks selected as
repositories OF pull C money were permitted to
somewhat increase their deposits
While the eNped.ents thus employed to re-
lease to the people the money lying idle in the
treasury served to avert Immediate danger, our
surplus revenues have continued TO accumulate,
the excess for the present year amount ng on
the first day OF December to S5j,2j 70l. 10, and
estimated toreach the sum of S13. .O0J 900 on the
3Otfrof June next. Mt which date it is expected
'that this sum, added to prior accumulations,
will swell the surplus in the Treasury to Sl40,-
600 ,0O0
There seems to be no assurance that with
such n withdrawal from use of the peoples Cir
culating medium our business may not in the
near future be subjected TO the same distress
which was quite lately produced from the Same
cause. And while the functions of our Nation
. aI Treasury should be few and simple and
while it's best condition would be reached,
I believe. by its entire disconnection with pri-
vate business interests, yet when, by perver-
sion of its purposes it idly holds money useless
ly eubtracted from the channels of trade. there
seems to be reason for the claim that some
a le Ultimate means should be devised by the
Government to restore in an emergency, with
out waste extravaganza, such money to its
place among the people.
If such an emergency arises there now exists
no clear and undoubted executive
POWER OF RELIEF.
Heretofore the redemption Of per cent bonds
which were payable at the option OF the Gov
ernment, has afforded means for the disburse-
mont of the excess of our revenues; but those
bonds have all been retired, and there are no
bonds outstanding the payment of which we
have the right to insist upon. The contribution
10 TIE sinhing fund which furnishes the occa-
eion for expenditure in the purchase of bondn
has been already made for the curront year, go
that there is no outlet in that direction
In tho present state of legislation the only
pretenso of any existing executive power to
sestore at this time any part Of our surplus to
che people by its expenditure consists in the
aupposition that the Sc retary of the Treasury
may enter the market and purchase the bonds
Of the Government not yet due at a rate Of pre-
n1iuIn to be agreed upon.
The only provision of law from which such a
power could be derived is found in an appropri-
alton bill passed number OF years ago; and il
IL subject to the suspicion that it was intended
rsA temporary and limited in its application, in
stead of comforting n continuing discretion and
authority. No condition ought TO exist which
would justify the grant of power to single
official, upon his Judgment OF it's necessity, to
withhold from or release to the business
of the people, in an unusual manner,
money held in the Treasury, and thus
affect, at his will the financial situation OF the
country; and IL it is deemed wise to lodge in
che Secretary of the Treasury the authority in
the present juncture TO purchase bonds, IL
should be plainly vested. and provided, as far
as possible, with such checks anu limitations
as will define this official right and discretion
and at the same time relieve him from undue
responsibility.
La considering the question OF
PURCHASING BONDS
as n means Of restoring TO circulation the sur
f,Ius money accumulating in the Treasury, 10
should be borne in mind that premiums must
Sof cours ?, be paid upon such purchase, that
there may be large part of those bonds held
as investments which cannot be purchased NJ
any price, and that combinations among hold
ers who are willing TO sell may unreasonably
enhance the cost OF such bonds to the Goyorn-
ment
IL has been sugge sted that the present bonded
Aebt might be refunded at n less rate OF interest
and the difference between the old ana new
security paid in cash, thus finding use for the
surplus in the Treasury. Tho success Of this
fpIan, IL 10 apparent must depend upon the voli-
rtion of the holders u the present bonds; ana 1t
us not entirely certain that the nducement
which must be offered them would result in